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Brazil’s Sugar/Ethanol Makers May Begin To Reduce New Mill Investing
By Mr Ethanol | May 29, 2007
Bloomberg:
Brazilian sugar and ethanol makers will probably scale back investments in new mills in coming years as lower prices discourage spending, an industry leader said.
Sugar, the worst-performing commodity in the past 12 months, will likely stay around 9 cents a pound this year, said Fernando Moreira Ribeiro, executive director of Brazil’s Center- South Sugar and Ethanol Industry Association, known as Unica.
“At this price, the picture is not so rosy,” Ribeiro in an interview. “Many will reconsider the pace of investments.”
Sugar futures for July delivery rose 0.36 cent, or 4 percent, to 9.29 cents per pound at 9:40 a.m. on the New York Board of Trade. The price is down 43 percent from a year ago.
About 80 projects for new mills are planned over the next three years in Brazil, the world’s biggest maker and exporter of sugar and cane-based ethanol, Ribeiro said. Investors may hold off on that spending should the price of sugar hover around 9 cents, he said.
Topics: Brazil, Ethanol, Investing, Market, News |
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